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Manam Ramu
Answers (1)
Given daily demand d=40 quarts per day std dev =6 quarts Ce= 35 cents Service level =Cs/(Cs+Ce) Optimal orders = mean demand + z * std dev 49 = 40 + z*6 => z=0.6666 from standard normal diistribution table service level will be 0.748 => Cs=104 cents.
